State pension commission is not balanced, critics say

The makeup of a special commission recommending further changes to the state’s pension system has come under scrutiny, with critics calling members biased insiders and others calling them experts.

Nancy Reardon

Some call them biased insiders. Others see them as experts with years of experience.

Regardless, several members of a special commission recommending further changes to the state’s pension system have come under criticism.

“I don’t think it’s a very balanced commission,” said Michael Widmer, president of the Massachusetts Taxpayers Foundation, a watchdog group on public spending. “The makeup is heavily biased toward those with an investment in the current system.”

Three of the special commission’s 15 members are top officials at state retirement agencies, each of whom is legally required to be there. They are Joseph Connarton, executive director of the Public Employee Retirement Administration Commission; Nicola Favorito, executive director of the State Retirement Board; and Joan Schloss, executive director of the Massachusetts Teachers’ Retirement System.

The panel’s composition is dictated by statute, with 10 members appointed by state officials including the governor, state auditor, Senate President Therese Murray and House Speaker Robert DeLeo.

The commission was created as part of the 2009 state budget to study the state’s pension system. The pension reform bill signed into law earlier this month expanded its mission, and it is due to issue a report with recommendations by Sept. 1.

Sen. Robert Hedlund, R-Weymouth, said last week he was frustrated that amendments proposed by Republicans during the pension debate were voted down for later consideration by the commission.

“I will be diplomatic and say there are people on the commission who have some track record as to resist a lot of the provisions that I put forward toward debate,” he said.

But Connarton said Wednesday that assuming he and other retirement officials will be biased is “stereotypical.”

“Many of the people on this commission have been in government for a long time,” he said. “If that makes us disqualified because of our years of experience, that’s a sad commentary on public service.”

State Sen. Kenneth Donnelly, who previously held Connarton’s job and is former secretary-treasurer of the Professional Firefighters of Massachusetts, was one of Murray’s appointees.

When asked about Donnelly’s appointment, a spokeswoman for Murray said in a statement, “As she does with any appointment, the President looks for members who have done work on issues relative to the Commission’s scope, and chooses her appointees on those grounds.”

Alicia Munnell, the commission’s chairwoman and a gubernatorial appointee, declined to comment until after the commission’s report is released late this summer. She is the director of the Center for Retirement Research at Boston College and a professor of management science.

Beacon Hill’s top leaders – Gov. Deval Patrick, Murray and DeLeo – also have declined to comment on the next steps in pension reform, saying in statements issued this week only that they look forward to the panel’s report.

The pension reform bill signed into law two weeks ago by Patrick closed some glaring loopholes in the retirement system, but intentionally failed to address several other issues.

Instead, the commission was told to look at potential caps for annual pension payments, eliminating termination allowances and imposing criminal penalties for pension fraud, among other changes.

As a provision of last week’s pension bill, two new members will be appointed by the governor. They have not yet been announced.

Rep. Robert Spellane, D-Worcester and one of DeLeo’s appointees, said he believes no member “feels improvements can’t be made.” He also said he believes the commission’s report will lead to further legislation.

“If by chance this pension commission does not come back with meaningful recommendations, it will be incumbent on me as chair of the Committee on Public Service to push for legislation,” he said.

Reach Nancy Reardon at nreardon@ledger.com.

WHO IS ON THE BOARD?

The special commission studying the state’s pension system was created last year, when legislators passed the budget for the 2009 fiscal year, which started in July. The commission’s scope was expanded by the pension reform bill passed two weeks ago.

The 15-person commission – as dictated by statute – includes a combination of mandatory members and appointees of top state officials.

The governor has appointed two members. He still has to appoint two more, one an “expert” and another from a group recommended by the AFL-CIO.

Current commission members include:

Alicia Munnell, director of the Center for Retirement Research at Boston College, gubernatorial appointee and chairwoman of the commission

Peter Diamond, economics professor at MIT, gubernatorial appointee

Sen. Kenneth Donnelly, former commissioner with the Public Employee Retirement Administration Commission, appointed by the Senate president

Sen. Thomas McGee, Senate chairman of Joint Committee on Public Service, appointed by the Senate president

Rep. Robert Spellane, House chairman of the Joint Committee on Public Service, appointed by the House speaker

Rep. Michael Rodrigues, House vice chairman of the Joint Committee on Public Service, appointed by the House speaker

Sen. Michael Knapik, appointed by the Senate minority leader

Rep. Todd Smola, appointed by the House minority leader

Pam Kocher, deputy chief of staff for the Executive Office of Administration and Finance, appointed by the secretary of administration and finance

John Parsons, general counsel in State Auditor’s Office, appointed by the state auditor

The following members are from organizations required to be represented on the commission:

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